Polygon (MATIC) At Risk of Drop to $0.65

Briefly –

  • MATIC lost nearly 8% during Tuesday’s trading sessions.
  • The alternative coin stays beneath the Ichimoku levels, suggesting that sellers might dominate the network.
  • Buying volume over the daily candlestick’s final hours might depict an oncoming reverse.

MATIC’s price seems to vex bears and bulls with sideways and directionless trading actions. Furthermore, the previous few days saw the altcoin plunging under the Cloud and multiple crucial Ichimoku support areas, warning of a short-term sell-off.

MATIC Price Drops under Crucial Ichimoku Levels

Polygon price has recorded some mixed actions over Tuesday’s trading sessions. The daily candle shows that MATIC plunged by more than 8% to form another 10-day low. However, late sessions yesterday witnessed buyers joining. That can see MATIC rallying higher to regain the previous losses.

The price action whipsaw might translate to a bearish trap or a bullish recovery. From an Ichimoku standpoint, Polygon’s price stays under Senkou Span A, Tenkan-Sen, Kijun-Sen, and Senkou Span B. that means bearish actions on the daily price chart.

Buyers stepped up to support Polygon near $1.19 (38.2% FIB retracement). If selling activities push the al under this zone, it will widen the path towards lower prices. That can see MATIC returning to $0.65 within no time.

However, MATIC bulls have the opportunity to control the asset’s movements. The Kumo Twist stays ahead (15 October). If the prevailing near-term rally generates a short squeeze, MATIC will not experience challenges moving in the Cloud’s thinnest zone, and a rally might take MATIC towards the value area at $2.0.

Polygon Overview

Polygon is a crypto network that supports infrastructure development and helps ETH scale. It uses Polygon SDK, a flexible framework allowing developers to create and connect Layer2 infrastructures such as Validium, zkRollups, Optimistic Rollups, and Plasma. Polygon changed from Matic Network in 2021 February and aimed to support many Layer2 infrastructures.

MATIC is Polygon’s native token. Holders can use the coin to pay the network’s transaction fees. While writing this content, MATIC trades at $1.21. That came after the asset bounced off the 200-day Moving Average support and past the resistance at $1.25. Polygon Enthusiast should wait for MATIC to surge beyond $1.50 for a clear upside trend.

By Postmodern Studio – shutterstock.com